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The Italian Parliament has included a 26% capital tax on crypto-asset trading as part of its budget plan for the year 2023, as nations around the world consider implementing strict rules on the use of digital currencies. Cryptocurrencies are actually referred to in the budget as virtual, electronically-based wealth that may be held and exchanged.
Incentives announced for declaring crypto profits
If gains from cryptocurrency trading exceed 2,000 euros (about Rs. 1.7 lakh) every tax period, they are subject to a 26 percent tax rate. In order to encourage cryptocurrency investors to disclose their holdings, the nation has outlined a few incentives. As a result, the new measure also establishes a “substitute income tax” for investors at a rate of 14% of the assets’ value on January 1, 2023, rather than their original cost.
Similar to this, losses from cryptocurrency investments that exceed 2000 euros in a tax period may be deducted from profits and carried over to the following tax period.
Italy has also acknowledged the sector of virtual digital assets’ existence within the current financial system.
How many crypto-holders are there in Italy?
Around 1.3 million people, or almost 2.3 percent of the population, reside in Italy and are crypto holders. According to statistics, as of July 2022, the majority of crypto users in the nation were between the ages of 28 and 38. To encourage people to create businesses and make money, the nation continues to work in the crypto industry’s favour.